For The Record: Proof Is Key In Supporting Tax Claims

I was recently asked what I thought taxpayers should take from the recent scramble to apply for the Small Business Administration’s Paycheck Protection Program. Without hesitation, I replied, “keep good records.”

Record keeping has always been an important part of tax compliance. That’s because taxpayers aren’t always required to submit documentation along with tax returns—especially when filing electronically—to the IRS. Taxpayers are supposed to retain evidence to support deductions for business and travel, charitable donations, medical expenses, and more for at least as long as the statute of limitations (typically three years from filing for most tax returns).

But more ...